Second Chance Personal Loans With Bad Credit | [year] Guide

If you have ever needed to borrow money from lenders you know that it may be difficult to get approved for a loan in the case, you have bad credit.

A poor credit score will likely sabotage your chance of getting a loan with low interest rates, however, you can opt for second chance personal loans even with bad credit. 

What are second chance personal loans with bad credit? Is this type of loan easy to get for borrowers with bad credit?

We will answer your questions and help you get to find the second chance personal loan you are looking for even with bad credit.

Before you start any loan process, you should know what is your credit score. Check your credit score here

Our best 3 picks for second chance personal loans are:

Bad Credit Loans

Zippy Loans

M1 Finance


What are second chance personal loans?

Second chance personal loans are specially designed to help people with bad credit. People with a poor credit score are less likely to get approved for a loan, especially when it comes to unsecured loans that don’t involve collateral.

Second chance personal loans are usually borrowed to help people with bad credit get back on their feet while still having the ability to borrow money and improve their credit score.

Borrowers are usually asked to disclose the reason for borrowing money, while this type of loan can be used for practically anything.

You can use second chance personal loans for an emergency, medical bills, repairs and remodeling, and other financial matters.

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What are the types of second chance personal loans?

There are many different types of loans that can be considered second chance loans. Many lending services, including peer-to-peer lenders, and online lending services, offer a great variety of second chance loans for bad credit. Here are some of the types of personal loans:

Unsecured loans

Unsecured loans are mostly easily approved for borrowers with good credit scores because this type of loan doesn’t involve any kind of collateral and is usually secured by an exceptional credit score or a high annual income. Unsecured loans may also involve higher interest rates.

Secured loans

Secured loans always involve some kind of collateral as collateral is used to secure the loan and ensure the lender that you will pay off the loan as agreed. Secured loans might be a perfect way to get a second chance and get a loan that you need for an emergency or to get back on your feet.

Installment loans

Installment loans are some of the most common choices for second chance loans for bad credit. Many online lenders such as Bad Credit Loans and Zippy Loan will approve installment loans for borrowers with bad credit.

Installment loans are repaid in monthly payments that are set and arranged in advance and that need to be regularly covered every month.

Revolving credit

Revolving credit can be used in the form of credit cards, credit based on home equity, while a personal line of credit is also a common example of revolving credit. One of the most common examples of revolving credit is taking a loan through your credit card and spending the amount when you want and as you want.

Payday loans

Payday loans are secured by your regular source of income. When you are approved for a payday loan, you will get an entire amount you agreed upon with your lender, while your repayments will be deducted from your monthly payment along with interest rates.

Co-signed loans

Co-signed loans are excellent to get a loan, especially if you are struggling with bad credit. The condition, however, is to find someone with an excellent credit score to co-sign your loan application. The person co-signing the loan agrees to be fully responsible in case you fail to make the payments in time.

Home equity loans

A home equity loan is also known as a “second mortgage” as this type of loan is rather like a mortgage and is usually an easy way for people with bad credit and home equity to get a loan. The value of your home secures the loan, which is how you are likely to get approved for home equity loans even with bad credit.

Can I get a second chance loan with bad credit?

You can get a second chance loan with bad credit as these loans are specially designed to allow people with bad credit scores to get back on track and recover financially while still being able to get approved for a loan.

Many online lending services offer second chance loans for borrowers with bad credit, which includes online lending markets such as and  

What is the easiest loan to be approved for?

Some of the easiest loans to be approved for are payday loans and installment loans. Installment loans can be mortgages and other types of loans that involve repayment in installments, which are fixed monthly payments that need to be covered regularly.

Payday loans are also easy to be approved for even with bad credit as your loan is secured with your monthly income.

Payday loans are a great way to get a second chance loan with bad credit, while the monthly loan rates are deducted from your monthly payment.

You can apply for a payday loan or installment loan with online lending services, independent lenders, banks, and financial institutions.

Read more about 1 hour pay day loans.

When to use second chance loans?

If you need to take a loan for emergency expenses or other reasons, and you have bad credit or poor credit score, you can use second chance loans.

Second chance loans are designed for borrowers with bad credit that can’t qualify for traditional financing and take other types of loans.

Second chance loans are thus a form of subprime lending. Subprime lending facilitates loans for borrowers who have bad credit, which is why these loans usually involve higher interest rates.

Advantages of second chance loans

Second chance loans have numerous advantages aside from a couple of downsides like applying higher interest rates.

Here are some of the top advantages of taking a second chance loan:

  • Second chance loans involve fewer restrictions with minimal reliance on your credit score. There are also fewer conditions and terms involved, which means that a greater percentage of borrowers can qualify.
  • You don’t need to provide collateral unless the form of a second chance loan you are taking needs to be secured with an asset
  • You can build your credit score and improve your financial history in case you manage to make regular repayments
  • Second chance payday loans can be borrowed without a credit check
  • You can get approved and get funded within 24 hours with many lenders
  • Second chance loans are paid directly to your bank account
  • You can use the loan for anything you want and when you want
  • Many lenders offer guaranteed approval for second chance loans

How much money can I get with second chance loans?

The amount you can get with second chance loans varies from one lender to the next. Some lending services will offer between $100 and $3,000, while other lenders offer anywhere between $1,000 and $50,000.

In case you are applying for a payday loan, the amount you will get approved for may vary depending on your income. Here are some of the companies that can offer second chance loans:

  • Bad Credit Loans – you can explore the market of lenders and find independent lenders that can approve loans between a couple of hundred dollars to $10,000
  • Zippy Loan – borrowers can apply for loans between several hundred dollars to $15,000
  • M1 Finance – M1 Finance has a special product M1 Borrow that allows users to borrow up to 40% of their investment when the investment reaches at least $10,000.
  • OppLoans – this online lending service has second chance loans with amounts between $1,000 and $5,000
  • Upgrade – this lending service loan offers range from $1,000 to $50,000
  • Stilt – you can apply for second chance loans with Stilt and get anywhere from $1,000 and $35,000

You can check your qualifications with more than one lending service so you can compare interest rates, fees, and amounts you can get approved for with different service providers.

What are the criteria for second chance loans?

Just like with the case with the amount you can get for a second chance loan, the criteria also vary from one lender to another.

Depending on what service provider you choose, you will be asked to provide different documentation and disclose different information.

However, some criteria are generally the same for many lending services. Some of the most common criteria for being approved for a loan are:

  •  Minimum credit score – even with bad credit, many lenders will need you to have at least a 600 credit score
  • You need to be over 18, and over 19 in some countries with certain lenders
  • In case you are applying for a second chance payday loan, you need to be employed
  • Employment status for other types of second chance loans

Second chance loans are generally easy to come by and be approved for, as these loans are designed for borrowers with poor credit scores and bad credit.

Many lenders will require your employment status as your monthly payments would pose as security that you can repay your loan and pay rates regularly.

How do I qualify for a loan with bad credit?

Luckily for borrowers with poor credit scores, you can easily qualify for second chance loans with bad credit.

As mentioned before, second chance loans are specifically designed for borrowers who are experiencing financial difficulties when it comes to improving their credit score.

That means that being approved for a second chance loan with bad credit is guaranteed by many lending services and independent lenders.

Still, many lenders have minimum requirements for credit score rating, which is why you should check and compare as many lenders as possible.

Here are some of the possible requirements that you need to meet to be approved for a personal loan with bad credit:

  • Credit score needs to be above 600 with some lending services
  • Being older than 18, and 19 with some lenders
  • Having a regular income and disclosing employment status

How to apply for a second chance loan?

You can apply for a second chance loan online as a great number of online lending services are offering this type of loan for borrowers with bad credit.

The application process will be different from lender to lender; however, second chance loans usually involve minimum documentation and are often approved in a couple of business days.

You will be provided with an application form and provide your personal information like name, date of birth, and address.

Make sure that you are using a trusted lending service that keeps all your private data secured. You will also be asked to disclose your employment status, bank account, email address, Social Security Number (SSN), and the reason why you are applying for a loan.

Make sure to compare different lending services so you can choose the lowest interest rates combined with the least restricting terms and conditions.

Also, make sure to check for any hidden fees that might be charged for processing your loan application.  

What are some of the best second chance loan lenders?

A great number of online lending services offer second chance loans. You can compare some of the top companies and lending platforms that can approve your second chance loan.

  • Bad Credit Loans

You can visit and find a perfect lender in an open market of lenders. The lending platform connects borrowers to lenders who can grant them second chance loans and other types of loans based on their application details.

  • Zippy Loan

Zippy Loan is another lending platform that connects users to lenders based on their applications. You can get approved easily and your account can get funded in less than 24 hours in case you get approved. You can take anywhere between a couple of hundreds to $15,000 with

  • MoneyMutual

MoneyMutual is another lending platform with an open free market of independent lenders. This service offers short-term loans up to $5,000 for lenders with bad credit.

  • BillsHappen

BillsHappen can lend you between $500 and $5,000, while the service welcomes borrowers with all credit score ratings. That means that you can apply for a loan and get approved for a quick short-term loan even with a poor credit score. High interest fees may apply for borrowers with a poor credit score.

  • Personal Loans

Personal Loans lending service is an online market of independent lenders where you can borrow between $500 and $35,000. In case your loan application is approved, your account can get funded within the same business day.


In conclusion, the benefits of a second chance personal loan with bad credit outweigh the drawbacks. Though there might be a financial risk, the potential to rebuild your credit and debt-to-income ratio are well worth it.

Second chance personal loans with bad credit can be beneficial for those who need to improve their debt-to-income ratio or credit score. The benefits of these loans outweigh the risks, so if you find yourself in this situation!